Firm Updates

McCafferty & Company Releases Music and TV Production Primers

July 2015: McCafferty & Company announces the addition of two new industry primers to the its research catalog. The Music Primer provides an in-depth examination of the digital, home audio, and live music space. The Television Production Primerprovides a comprehensive look into the unscripted television industry. Key industry themes, demand drivers, and revenue streams are explored.

The reports are available for public download on the McCafferty & Co. website, using the firm's new secure research portal. New security features include a login and account management center, which streamline the way users can securely request, track, and view their download activity.

Important Industry News

Top Developments Influencing Tech & Media

Verizon Acquires AOL, Its Online Content Creators and Digital Ad Tech

May 2015: Verizon Communications announced its plan to purchase leading content producer, AOL for $4.4 billion. Beyond acquiring news sites like The Huffington Post and TechCunch, the deal also grants the mobile network provider use of AOL's powerful mobile video and advertising technology.

Digital and TV account for the largest shares of total US ad-spend in 2014 at 28% and 42%, respectively (1). By layering AOL’s technology atop its 109 million wireless connections and growing cable television business, Verizon is betting that it can make billions of dollars by selling ads against streaming video. The merger, which is subject to regulatory approval, is expected to close this summer (2). Read more

(1) Strategy Analytics (2) New York Times

Mobile Ad-blocking becomes a reality with the new iOS 9 for iPhone

June 2015: Apple released its plans for the new Safari iOS 9, which will include a new extension that allows users to block ads on iPhones and iPads. According to a 2014 report by PaigeFair, ad-blocking usage has increased substantially in recent years, growing by nearly 70% year-over-year, with 144 million people reportedly using ad-blocking software. Yet until now, ad-blocking software had only been available for use on desktop web browsers. Apple iOS 9’s new “Content Blocking Extensions” will make Safari the first mobile browser to allow ad-blocking. Read more

June 2015: Comcast Corp has announced plans to acquire TV ad-targeting firm, Visible World, which uses data from cable set-top boxes to deliver specific viewers with ads based on their zip codes. This type of automated ad-buying, known as “programmatic,” has already become the norm for the online ad-market, with 45% of US ads in 2014 purchased in programmatic buys (1).

Although the programmatic TV ad-market is still in its adolescence (comprising only 2-3% of TV ad budgets in 2014), it is projected to rise sharply over the next few years. According to the latest report from Magna Global, programmatic TV will grow to representing 17% and $10 billion of TV ad budgets by 2019. With the addition of Visible World, Comcast is poised to become a dominant player in this fast-growing market. Read more

July 2015: Apple launches its new subscription-paid streaming music service “Apple Music,” sparking debate over the longevity of the competing “freemium,” or ad-supported streaming models. According to the most recent IFPI Digital Music Report, the revenue created by the estimated 400 million people who use a free (ad-supported) streaming service (including YouTube) was $610 million, while the revenue generated by the 41 million users who use a paid subscription service was $1.57 billion. This means that one-tenth of the world’s digital listenership generated roughly 75% of all the revenue received from music streaming in 2014. Read more

Personnel News

McCafferty & Company Proudly Welcomes New Hire Aaron Lau

July 2015: UCLA graduate Aaron Lau will join McCafferty & Company as a full-time analyst on July 13th, 2015. Aaron began his career at McCafferty & Co as a summer analyst in 2014 and the firm is pleased to announce his full-time return.

June 2015: Following a competitive application and selection process for its 2015 Summer Analyst Program, McCafferty & Company is pleased to welcome Kyle Haesler and Joe Walters as summer analysts. Kyle is currently seeking a degree in Finance at Miami of Ohio, and Joe is studying Economics at UCLA.